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WAVES’ TVL surpasses $1b to give these messages to its investors

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Source: Unsplash


WAVES has been trading within a tight range for almost two weeks now, with barely any upward or downward action. However, that might be about to change as the native token triggered a 112% rally. Here’s a deep dive into the potential reason(s) behind this unprecedented surge.

Riding the waves 

The WAVES team’s master plan to revive the entire functioning of its ecosystem’s DeFi protocols has shown its true colors. According to data from DeFiLlama, Waves TVL rose by 25.09% in the past 24 hours and is currently at $1.11 billion, ranking tenth in the public chain.

Source: DeFiLama

Other metrics such as development activity and volume painted a similar picture. The latter recorded more than 3.62 billion on the platform showcasing the sheer rush of investors wanting to jump onto the bandwagon post a massive bloodbath.

Source: Santiment

Development activity, in fact, registered a “U-turn” facing north following this optimistic sentiment. Indeed, this was the case post-de-pegging of the USDN stablecoin that triggered a massive sell-off in WAVES price.

USDN is Waves protocol’s algorithmic stablecoin, designed similarly to the Terra blockchain’s algorithmic stablecoin, UST. To mint USDN, users must lock the WAVES tokens inside Neutrino‘s smart contracts.

Given the unfortunate event, the WAVES/USDT pair experienced a two-month downfall which recently marked a low of $4.4. As a result, the downtrend devalued the altcoin by 93.3%.

Reviving the waves 

Needless to say, to revive the damage, the team did take action.

In two months, the team completely restored the peg of USDN, but it was only prepared before the execution of the Master Plan. The proposed master plan consisted of four steps.

Source: BusinessWire

Furthermore, the team also aimed to reinforce the Waves DeFi while increasing the community’s governance power. Indeed, this plan worked out just fine.

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Shubham is a full-time journalist/ Crypto data analyst at AMBCrypto. A Master's graduate in Accounting and Finance, Shubham's writings mainly focus on the cryptocurrency sector with particular emphasis on market research studies and communications for >2 years. Also, a die-hard Chelsea fan #KTBFFH.

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